logo
Trump rescinds US$4bil in US funding for California High-Speed Rail project

Trump rescinds US$4bil in US funding for California High-Speed Rail project

WASHINGTON: US President Donald Trump said on Wednesday the Transportation Department is rescinding US$4 billion in US government funding for California's High-Speed Rail project.
The department said there was no viable path forward for California's High-Speed Rail project and it was considering potentially clawing back additional funding related to the project.
The Federal Railroad Administration issued a 315-page report last month citing missed deadlines, budget shortfalls and questionable ridership projections.
One key issue cited is that California had not identified US$7 billion in additional funding needed to build an initial 171-mile segment between Merced and Bakersfield, California.
The California High-Speed Rail System is a planned two-phase 800-mile (1,287 km) system with speeds of up to 220 miles per hour that aims to connect San Francisco to Los Angeles/Anaheim, and in the second phase, extend north to Sacramento and south to San Diego.
The California High-Speed Rail Authority said previously it strongly disagrees with the administration's conclusions "which are misguided and do not reflect the substantial progress made to deliver high-speed rail in California."
It noted California Governor Gavin Newsom's budget proposal before the legislature extends at least US$1 billion per year in funding for the next 20 years "providing the necessary resources to complete the project's initial operating segment." The authority noted in May there is active civil construction along 119 miles in the state's Central Valley.
Transportation Secretary Sean Duffy said "Newsom and California's high-speed rail boondoggle are the definition of government incompetence and possibly corruption."
Newsom responded on social media: "Won't be taking advice from the guy who can't keep planes in the sky."
Voters approved US$10 billion for the project in 2008, but the costs have risen sharply. The Transportation Department under former President Joe Biden awarded the project about $4 billion.
The entire San Francisco-to-Los Angeles project was initially supposed to be completed by 2020 for US$33 billion, but has now jumped from US$89 billion to US$128 billion.
In 2021, Biden restored a US$929 million grant for California's high-speed rail that Trump had revoked in 2019 after the Republican president called the project a "disaster."
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trump says Israel will have to decide on next steps in Gaza
Trump says Israel will have to decide on next steps in Gaza

Free Malaysia Today

time21 minutes ago

  • Free Malaysia Today

Trump says Israel will have to decide on next steps in Gaza

President Donald Trump speaks to members of the media after he arrived at Prestwick Airport in Ayrshire, Scotland. (AP pic) TURNBERRY : US President Donald Trump said on Sunday Israel would have to make a decision on next steps in Gaza, adding he did not know what would happen after the collapse of ceasefire and hostage-release negotiations with Hamas. Trump underscored the importance of securing the release of hostages held by Palestinian Hamas militants in Gaza, saying they had suddenly 'hardened' up on the issue. He added Washington would provide more aid to the Palestinian enclave devastated by US ally Israel's military assault. 'They don't want to give them back, and so Israel is going to have to make a decision,' Trump told reporters at the start of a meeting with European Commission President Ursula von der Leyen in Scotland. 'I know what I'd do, but I don't think it's appropriate that I say it. But Israel is going to have to make a decision,' he said, while also claiming, without evidence, that Hamas was stealing food coming into Gaza and selling it. Reuters reported on Friday an internal US government analysis found no evidence of systematic theft by Hamas of US-funded humanitarian supplies, challenging the rationale that Israel and the US gave for backing an armed private aid operation. Over 20 Democratic US senators wrote a letter to the Trump administration on Sunday, urging it to cease funding for the Gaza Humanitarian Foundation (GHF) and restore support for existing United Nations aid distribution mechanisms. The UN estimates Israeli forces have killed over 1,000 people seeking food supplies, the majority near the militarised distribution sites of the GHF, the new private aid group that uses a for-profit US logistics firm run by a former CIA officer and armed US military veterans. Dozens of Gazans have died of malnutrition in recent weeks, according to Gaza's health ministry. It reported six new deaths over the past 24 hours due to malnutrition, bringing the total deaths from malnutrition and hunger since the start of Israel's war in Gaza to 133 including 87 children. Democratic former president Barack Obama said on Sunday aid must be permitted to reach people in Gaza. 'There is no justification for keeping food and water away from civilian families,' Obama wrote on X, adding action should be taken 'to prevent the travesty of innocent people dying of preventable starvation.' Trump and Israeli Prime Minister Benjamin Netanyahu both appeared on Friday to abandon Gaza ceasefire negotiations with Hamas, alleging Hamas did not want a deal. Netanyahu said Israel was now mulling 'alternative' options to achieve its goals of bringing its hostages home and ending Hamas rule in Gaza, where starvation is spreading and most of the population is homeless amid widespread ruin from Israel's assault. Trump said he believed Hamas leaders would now be 'hunted down', telling reporters: 'Hamas really didn't want to make a deal. I think they want to die… And it got to be to a point where you're going to have to finish the job.' US to provide more aid, Trumps says Trump on Sunday said Washington would provide more humanitarian aid to Gaza, but wanted other countries to participate as well. He said he would discuss the issue with von der Leyen. 'We're giving a lot of money, a lot of food, a lot of everything,' he said. 'If we weren't there, I think people would have starved, frankly. They would have starved, and it's not like they're eating well.' He said he spoke with Netanyahu, adding they also discussed Iran. He said he and British Prime Minister Keir Starmer would discuss Israel on Monday. Trump said Washington was not acknowledged for earlier food aid for Gaza. 'No other country gave anything,' he said, calling out Europe in particular. 'It makes you feel a little bad when you do that and, you know, you have other countries not giving anything… Nobody gave but us. And nobody said, Gee, thank you very much. And it would be nice to have at least a thank you.' The latest bloodshed in the decades-old Israeli-Palestinian conflict was triggered in October 2023 when Hamas attacked Israel, killing 1,200 and taking about 250 hostages, Israeli tallies show. Gaza's health ministry says Israel's subsequent military assault has killed nearly 60,000 Palestinians. It has also caused a hunger crisis, internally displaced Gaza's entire population and prompted accusations of genocide at the International Court of Justice and of war crimes at the International Criminal Court. Israel denies the accusations.

Gold hits near two-week low after US, EU agree to tariff deal
Gold hits near two-week low after US, EU agree to tariff deal

New Straits Times

timean hour ago

  • New Straits Times

Gold hits near two-week low after US, EU agree to tariff deal

NEW YORK: Gold prices fell on Monday to their lowest in nearly two weeks, as a framework trade agreement between the United States and European Union reduced appetite for safe-haven assets. Spot gold was down zero point one per cent at US$3,332.39 per ounce, as of 0020 GMT, after touching its lowest level since July 17. US gold futures edged zero point one per cent lower to US$3,332.50. The US struck a framework trade agreement with the European Union on Sunday, imposing a 15 per cent import tariff on most EU goods – half the threatened rate – and averting a bigger trade war between the two allies that account for almost a third of global trade. The agreement mirrors key parts of the framework accord reached by the US with Japan, but like that deal, it leaves many questions open, including tariff rates on spirits, a highly charged topic for many on both sides of the Atlantic. Investor sentiment improved following the deal, with European currencies and US stock index futures trading higher. Senior US and Chinese negotiators will meet in Stockholm on Monday to tackle longstanding economic disputes at the centre of a trade war between the world's top two economies, aiming to extend a truce keeping sharply higher tariffs at bay. The US dollar index eased zero point one per cent, making greenback-priced bullion less expensive for overseas buyers. The Federal Reserve is widely expected to leave its benchmark interest rate in the 4.25–4.50 per cent range at the conclusion of a two-day policy meeting on Wednesday. Fed Chair Jerome Powell has indicated the central bank should wait for further economic data before making any rate adjustments. US President Donald Trump said on Friday he had a positive meeting with Powell, suggesting the Fed chief might be inclined to lower rates. Spot silver was up zero point one per cent at US$38.17 per ounce, while platinum gained zero point nine per cent to US$1,413.50 and palladium rose zero point five per cent to US$1,225.25.

Oil rises as US-EU deal lifts trade optimism
Oil rises as US-EU deal lifts trade optimism

New Straits Times

timean hour ago

  • New Straits Times

Oil rises as US-EU deal lifts trade optimism

SINGAPORE: Oil prices rose on Monday after the United States reached a trade deal with the European Union and may extend a tariff pause with China, reducing concerns that potentially higher levies would limit economic activity and impact fuel demand. Brent crude futures inched up 22 US cents, or 0.32 per cent, to US$68.66 a barrel by 0035 GMT, while US West Texas Intermediate crude was at US$65.38 a barrel, up 22 US cents, or 0.34 per cent. The US-European Union trade deal and a possible extension in the US-China tariff pause are supporting global financial markets and oil prices, IG Markets analyst Tony Sycamore said. The United States and the European Union struck a framework trade agreement on Sunday that will impose a 15 per cent import tariff on most EU goods, half the threatened rate. The deal averted a bigger trade war between two allies that account for almost one-third of global trade and could crimp fuel demand. Also, senior US and Chinese negotiators will meet in Stockholm on Monday, aiming to extend a truce keeping sharply higher tariffs at bay ahead of the Aug 12 deadline. Oil prices settled on Friday at their lowest in three weeks as global trade concerns and expectations of more oil supply from Venezuela weighed. Venezuela's state-run oil company PDVSA is getting ready to resume work at its joint ventures under terms similar to Biden-era licences, once US President Donald Trump reinstates authorisations for its partners to operate and export oil under swaps, company sources said. Though prices were up slightly on Monday, the prospect of OPEC+ further easing supply curbs limited the gains. A market monitoring panel of the Organisation of the Petroleum Exporting Countries and their allies is set to meet at 1200 GMT on Monday. It is unlikely to recommend altering existing plans by eight members to raise oil output by 548,000 barrels per day in August, four OPEC+ delegates said last week. Another source said it was too early to say. The producer group is keen to recover market share while summer demand is helping to absorb the extra barrels. JP Morgan analysts said global oil demand rose by 600,000 barrels per day in July on year, while global oil stocks rose 1.6 million barrels per day. In the Middle East, Yemen's Houthis said on Sunday they would target any ships belonging to companies that do business with Israeli ports, regardless of their nationalities, as part of what they called the fourth phase of their military operations against Israel over the Gaza conflict.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store